Re-balance Cycle Reminder All MyPlanIQ’s newsletters are archived here.

Regular AAC (Asset Allocation Composite) portfolios are always rebalanced on the first trading day of a month. 

For regular SAA and TAA portfolios, the next re-balance will be on Monday, December 23, 2019. You can also find the re-balance calendar for 2019 on ‘Dashboard‘ page once you log in. Please note that we are phasing out this rebalance calendar. 

As a reminder to expert users: advanced portfolios are still re-balanced based on their original re-balance schedules and they are not the same as those used in Strategic and Tactical Asset Allocation (SAA and TAA) portfolios of a plan.

Please note that we now list the next re-balance date on every portfolio page.

Core ETFs or Core Mutual Funds Portfolios

Last week, we introduced our AAC (Asset Allocation Composite) strategy. For brokerage investment accounts, we now advocate using ETFs for average investors. In this newsletter, we want to have some in-depth discussion on how to use mutual fund based portfolios if desired. 

Mutual fund based portfolios

There are two reasons for some investors to prefer using mutual fund based portfolios. The first is that mutual funds are much simpler to trade: you don’t need to be concern about intra-day prices as their prices are determined once a day, after market close. The other reason is that MyPlanIQ’s excellent total return bond mutual fund based portfolios have much longer return history and there are more good total return bond mutual funds (those that have won Morningstar’s manager of the year award) to choose from than ETFs. We have long monitored the progress of total return bond ETFs in the market. So far, we can only use three total return bond ETFs: PIMCO total return bond ETF (BOND), Doubleline total return bond ETF (TOTL) and Fidelity total return bond (FBND). So in the candidate bond fund list, we have to resort to using some index ETFs to complement. 

Though we have seen that ETF based bond portfolios are now more comparable with a total return bond mutual fund portfolio, as discussed in September 30, 2019: Boosting Bond ETF Portfolio’s Return With Muni Bond ETFs, some investors are still not comfortable with their short history and other issues such as liquidity (hard to get a fair price). Thus, it’s very understandable for them to stick to total return bond mutual fund portfolios. 

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